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Project Sample 4: {Morrisons Loyalist Customers} Client Overview • • • •

Client Name: Morrisons Client Contact Information (phone/email): Jodie Locking Client URL: https://groceries.morrisons.com Client Google Analytics Account Number: UA45024730-1

Technical Ability Morrisons have traditionally been a bricks and mortar retail business. As they introduce e-commerce capabilities there are two challenges Google Analytics has helped address: 1. Segmenting regular customers (Loyalists) vs. ‘Infrequent’ customers. • Separating these audiences helps MEC understand which customers to deliver transactional messages to (Loyalists) vs. Loyalty Programme messages in order to increase brand affinity (Infrequent). 2. Identifying the Shopping Basket value of Loyalists to improve re-marketing performance. • As Morrisons retains a large retail footprint, we needed to understand which customers have a higher propensity to buy online. This allows us to build Goals in GA which can then be used to create RLSA audiences to re-market through AdWords. In order to address these challenges, it became clear we needed a single view of the customer. This was made possible by migrating the client to DCM & DS3 so the Google Analytics account could be connected with AdWords and DoubleClick Campaign Manager. We are now able to match website traffic to a placement ID to better understand the influence our paid media is

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having on website behaviour. More specifically, we can see whether the consumers we are driving to the site are regularly returning (Loyalists) or infrequent visitors.

‘Complete Order’ Goal. 4. Had visited the Morrisons site and qualified for the ‘Completed Order’ Goal.

Finally, Goals have been established to understand whether people are reaching the ‘Complete Order’ section of the site (where you go through to payment) or ‘Completed Order’ (where payment has been made). This allows us to re-target users based on the actions they have taken onsite.

Trade driving offers with strong call to actions were delivered to the second and fourth audience segments (Loyalist non-converters vs. converters). Unsurprisingly, we found people who had qualified for the ‘Completed Order’ goal had a conversion rate of 42% compared to Loyalists who hadn’t bought anything before who recorded a conversion rate of 8%. We were starting to see the value of creating Goals.

Analytical Ability Prior to linking GA with AdWords and DCM, MEC’s hypothesis was Display advertising drove a higher percentage of ‘Infrequent’ customers. This theory was based on the assumption Display was ‘pushing’ people to the Morrisons site who may not ordinarily have a preference towards Morrisons. For instance a price point or promotion may have driven them to the site. In contrast, we believed SEM would drive a higher proportion of ‘Loyalists’ as a degree of intent had been shown towards the Morrisons brand – regardless whether they visited the site via Generic or Brand SEM. This hypothesis would suggest investing more heavily in Display advertising in an attempt to convert ‘Infrequent’ customers into ‘Loyalists’. Within SEM we had an additional hypothesis that targeting RLSA audiences built using GA Goals would deliver stronger performance from Loyalists in terms of our cost-per-order. Using a combination of GA Goals and DCM Floodlights, we were able to build a pool of users to retarget across Display and SEM based on whether users: 1. Had visited the Morrisons site < 2 times (Infrequents) and not bought anything. 2. Had visited the Morrisons site > 2 times (Loyalists) and not bought anything. 3. Had visited the Morrisons site and qualified for the

Digging deeper though, we began to understand the value of linking GA with AdWords and DCM. Results were broken down at a channel level and indicated customers visiting the site from ‘Display’ were 35% less likely to convert than those coming from SEM. This is now being used by the Digital Marketing team at Morrisons as a means to guide investment and creative direction around driving specific product messaging. Our approach has been quite simple since. Consumers in the first two segments are targeted with Loyalty Programme messaging, while consumers who have qualified for Goals are shown transaction based messaged. Interestingly, we have created RLSA audiences within AdWords for consumers who have qualified for the ‘Complete Order’ or ‘Completed Order’ Goals. Clickthrough rates are 66% higher than SEM activity that does not use Goals to define the audience. Business Impact Since applying the GA re-targeting lists, there have been a few headline take-outs: 1. Targeting RLSA audiences based off ‘Completed Orders’ Goals has reduced the cost-per-order by 89%. 2. Since applying Goals the orders per ‘000 impressions has increased from 19 to 166.

Contents 3. The overall cost-per-registration (CPO) of the Morrisons Loyalty Programme in Search has reduced from £4.20 to £1.89. This highlights benefit of using Goals to convert ‘infrequent’ shoppers into ‘loyalists’. 4. SEM CPC rate has improved by 40%. Based on the success of these changes, MEC are now working with Morrisons to improve performance further. We will continue to apply these lists to modify bid levels and show different ad messaging to new vs. returning current customers.

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